| Original
mortgage amount: |
Original amount
of your mortgage. |
| Appraised
value: |
The appraised
value of your home when you purchased it. |
| Current
term in years: |
Total length
of your current mortgage in years. |
| Years
remaining: |
Number of years
remaining on your current mortgage. |
| Income
tax rate: |
Your current
income tax rate. |
| Calculate
balance: |
To let the calculator
determine your remaining balance, based on your original loan
information and years remaining, check this box. To enter your
own amount, leave this box unchecked. |
| Current
Appraised value: |
The current
appraised value of your home. |
| Loan
balance: |
Balance of your
mortgage that will be refinanced. |
| New
interest rate: |
The annual interest
rate for the new loan. |
| New
term in years: |
Number of years
for your new loan. |
| Loan
origination rate: |
This is the
percentage of the new mortgage that is paid to the lender as the
loan origination fee. Typically this fee is 1% of the loan balance.
|
| Other
closing costs: |
Estimate of
all other closing costs
for this loan. This should include filing fees, appraiser fees
and any other misc. fees paid. |
| Points
paid: |
This is the
number of points paid
to the lender to reduce the interest rate on the mortgage. Each
point costs 1% of the new loan amount. |
| Current
payment: |
Your current
payment is the sum of principle, interest and PMI.
Because refinancing does not affect your insurance or taxes they
are not included here. |
| New
payment: |
Your new payment
is the sum of principle, interest and PMI.
|
| Monthly
PMI payment: |
Monthly cost
of Principle Mortgage insurance (PMI). For loans secured with
less than 20% down, PMI is estimated at 0.5% of your loan balance
each year. Monthly PMI is calculated by multiplying your starting
loan balance by this percent and dividing by 12. When your loan
balance exceeds 20% of the original purchase price, your PMI payment
drops to zero. |
| Monthly
PI payment: |
Monthly principle
and interest payment. |
| Breakeven
monthly payment savings: |
The number of
months it will take for your monthly payment reduction to be greater
than your closing costs.
|
| Breakeven
PMI & interest savings: |
The number of
months it will take for your interest and PMI savings to exceed
your and closing costs.
|
| Breakeven
total savings after tax: |
The number of
months it will take for your after tax interest and PMI
savings to exceed your closing
costs. |
| Breakeven
total savings vs. prepayment: |
This is the
most conservative breakeven measure. It is the number of months
it will take for your after tax interest and PMI savings to exceed
both your closing costs
and any interest savings from prepaying your mortgage. The prepayment
amount used in this calculation is the amount that you would have
to spend on closing costs. |
